Instagram Ads Will Soon Include Links

Photo and video-sharing service Instagram said Wednesday it will soon allow marketers to showcase multiple images in their ads using a new "carousel" ad format.

Perhaps more importantly, the Facebook-owned social network said the new carousel format will also allow advertisers to link outside of Instagram for the first time using a "Learn More" button.

Marketers could use the button to drive traffic to their own websites to educate consumers further about their products, or to capture data from them such as contact information. A charity, for example, might use the carousel format to catch users' attention before driving them to donate.

"Users see ads on Instagram and ask where they can find [products], and businesses want to help them learn more," said James Quarles, the company's global head of business and brand development.

Despite the addition of links, however, Mr. Quarles said the new format is aimed at brand advertisers as opposed to direct-response ones. In other words, it's not necessarily intended to drive app downloads or web-based transactions, but to drive awareness and "inspiration." As a result, the ads will be sold on a cost-per-impression basis, as opposed to cost-per-click.

Mr. Quarles said Instagram plans to grow its ad business in two ways in 2015: by improving the impact of its ad formats, and enticing more advertisers onto its platform. The company is also investing heavily in its ad measurement and targeting capabilities, Mr. Qualres said.